Levels to watch: FTSE 100, DAX and Dow

The Dow continues its recent ascent, while the fortunes of the FTSE 100 and DAX will become clearer once the price breaks from key trading zones.

Stock exchange
Source: Bloomberg

FTSE 100 in decisive trade zone

The FTSE 100 has been trading in a bullish trend of late, with the creation of higher highs and higher lows in play for almost a month.

However, with the price pulling back from the crucial August high of 7553, we are faced with the potential for a wider pullback in the index, should the price fall below 7487. As such, watch out for an hourly close above 7553, or below 7487 to provide a more certain directional bias. Until then, the short-term uptrend remains intact.

DAX continues to consolidate around key level

The DAX remains within a consolidation mode, as it oscillates around the notable long-term resistance level of 12,954. Given the trend coming into this pattern, a bullish move is most likely.

However, for greater confidence, watch for an hourly close above 13,001 or below 12,893 to provide a breakout signal.

Dow continues to grind higher

The Dow Jones has been gaining ground on a daily basis, with record highs being posted with great regularity. However, the index is forming a rising wedge formation, which points towards a potential breakdown before long.

The signal of such a move would be an hourly close below 22,809. Until then, further upside seems the most likely outcome for the day.

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